“Stocks are not expensive, but stocks have been pricing in a normal recovery."

"But this recovery’s going to be anything but normal,” he added.

Zook believes that while deflation seems to be approaching, inflation expectations are also starting to build.

“Whether or not we see prices decline in some categories, the real consumer is experiencing inflation,” he explained. “So we do expect that as the velocity of money does pick up on the other side of deflation, that interest rates are going to go up a lot—long-term, they go up significantly from here.”